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Central Bank of Armenia Sets Course for Digital Transformation
In a significant move towards a cashless society, the Central Bank of Armenia (CBA) has outlined its comprehensive strategy for digital transformation in the country’s financial markets.
According to Governor Martin Galstyan, the CBA is committed to leveraging technology to enhance transparency, promote financial inclusion, and improve compliance measures. The bank aims to establish an open finance ecosystem that fosters competition among financial services providers while ensuring regulatory oversight.
National Electronic Identity System
A key component of the digital transformation strategy is the development of a national electronic identity system (NEIS). This will enable citizens to access various online services and transactions securely, using their digital identities linked to their bank account numbers. The NEIS will also strengthen anti-money laundering and combating terrorism financing procedures.
Regulatory Reforms
The CBA plans to introduce regulatory reforms to accommodate new financial technology players in the market. These changes will include:
- Developing common standards
- Creating smart regulatory frameworks
- Ensuring a level playing field for all participants
Data Infrastructure
Investments in data infrastructure, including RegTech and SupTech, are also on the agenda. This will facilitate end-to-end payments and financial services by licensed entities, reducing compliance costs while freeing up resources for business development.
Financial Inclusion and Innovation
The CBA is committed to promoting financial inclusion through digital transformation. It plans to establish a FinTech incubator to support startups and encourage innovation in the sector.
Central Bank Digital Currency
The bank is also exploring the possibility of introducing a central bank digital currency (CBDC), which could potentially serve as an instrument for payments, monetary policy, and cross-border transactions.
Global Collaboration
As the digital transformation journey unfolds, the CBA remains open to international cooperation and knowledge sharing. It aims to establish a cashless society that is secure, transparent, and inclusive, with a focus on meeting the needs of customers, businesses, and regulators alike.